The ownership of Norwegian coastal voyage company Hurtigruten is set to change hands in a deal valuing the business at around $444 million.
The independent directors of Hurtigruten have recommended a takeover offer led by UK private equity firm TDR Capital, property tycoon and board member Petter Stordalen and chairman Trygve Hegnar, be accepted.
TDR Capital holds 90% of the venture that is bidding for Hurtigruten while Stordalen and Hegnar hold 5% each.
The bid sent Hurtigruten’s shares up 52% to their highest level since 2008.
The buyout company, Silk Bidco, has indicated that Hurtigruten will continue to operate from its headquarters in Tromsø, and that it does not plan to change the company’s workforce.
TDR Capital partner, John Rosen, said: “When you do a scan of the leisure space, Hurtigruten is probably the most unique opportunity, so we quickly focused and realised that the Norwegian coast was somewhere we would like to invest.”
Stordalen told Reuters: “You need strong owners who are committed to invest in the future. And we want a bigger share of the global expanding leisure market.
“These are to be the five most exciting years in the company’s history.
In a statement, Stordalen said: “We are excited by the opportunity to accelerate the growth of the business, building on its strong platform in the Nordic region, investing across the fleet and, crucially, continuing to deliver a world class experience to passengers.
“The owners of Silk Bidco know Hurtigruten and its management and employees well.
“We appreciate its achievements as a reliable service provider to people, business and communities along the Norwegian coast.
“We are also impressed by the company’s growing success in international travel and tourism. Our plan is to build on all these elements and create an even greater company for the future.”
Hurtigruten, which operates a fleet of 12 ships, initiated an efficiency programme in 2012 to cut costs and boost top line growth by developing new concepts.